The document discusses various topics related to gold prices and their relationship to the economy. It covers how gold affects the economy, how gold prices reveal the state of the US economy, key events in gold price history like the gold rushes and Nixon abandoning the gold standard, and reasons why investors purchase gold as a hedge.

2. POINTS TO BE COVERED TODAY:
 How Gold Affects the Economy and You
 Gold Price & The U.S Economy
 Gold Price History
 Gold, "The Ultimate Bubble," Has Burst
 Three Reasons To Invest In Gold
 Gold News & Analysis
 Gold Price & Chart

3. HOW GOLD AFFECTS THE ECONOMY AND YOU
 Gold's impact on the economy waxes and wanes, depending on
how safe other investments are.
 When other investments seem too risky, gold always looks like a
good hedge.
 In fact, you can tell how healthy the economy is from the price of
gold.
 When the U.S was on the gold standard, the precious metal had
an even greater importance.

4. GOLD PRICE & THE U .S . ECONOMY
 Gold prices reveal the true state of U.S. economic health.
 When gold prices are high, that signals the economy is not healthy.
 Investors buy gold as protection from either an economic crisis or inflation.
 Low gold prices mean the economy is healthy — making stocks, bonds, or real estate more
profitable investments.
 Gold prices reflect the beliefs of commodities traders.
 If they think the economy is doing poorly, they will buy more gold. If they think the economy is
doing well, they will buy less gold.
 Gold prices reveal what savvy investors know about economic health.

5. THE GOLD RUSH STARTED IT ALL
 When gold was found at Sutter's Ranch in 1848, it inspired the
Gold Rush to California and the unification of western America.
 In 1861, U.S. Treasury Secretary Salmon Chase printed the first
U.S. paper currency backed by gold.
 That was the beginning of the gold standard.

6. GOLD PRICES & THE GREAT DEPRESSION
 The price of gold went from $20.67 an ounce in 1929 to $35 an ounce in 1934.
 The Federal Reserve was trying to maintain the gold standard as the economy continued to
worsen.
 That contributed to the Great Depression, sparked by the stock market crash of 1929 and multiple
bank failures.
 People started to hoard gold for protection. While countries in Europe had dropped the gold
standard, the United States held on.
 In 1934, President Franklin D. Roosevelt finally took action and signed the Gold Reserve Act. This
made it illegal for the general public to own gold in most forms.
 The Act required people to exchange their gold coins, bullion, and certificates for $20.67 per
ounce in paper money.
 It helped the federal government bolster its reserves of gold.
 The government raised the price of gold to $35 an ounce, allowing it to print more paper money.
Slowly, the economy started to grow again.

7. GOLD PRICE TRIPLED IN ONE DAY
 One of the most important moments in gold price history was the day President Richard M.
Nixon detached the U.S. dollar from the gold standard.
 Gold prices skyrocketed from $42 to $120 an ounce.
 In 1971, Nixon told the nation's central bank to stop redeeming the dollar for its value in gold.
 Foreign central banks could no longer exchange their dollars for U.S. gold.
 Nixon wanted to make the value of the dollar weaker compared to gold.
 He thought that would end the inflation caused by his wage-price controls. By 1976, Nixon
abandoned the gold standard completely.

8. JUNE 2, 2016 - GOLD ROSE $100 IN SIX HOURS
 In June 2016, gold prices surged $100 an ounce in six hours.
Investors panicked in the wake of Brexit, when Great Britain voted
to leave the European Union.
 Prices rose from $1,254.96 at 4 p.m. on June 23, the evening of
the Brexit vote, to $1,347.12 at midnight. Investors bought gold as
a hedge against a declining euro and British pound.
 In 2016, the U.S. stock market also entered a stock market
correction.
 As the Dow Jones Averages fell, gold prices rose.

9. SEPTEMBER 2011 - GOLD HITS HIGH OF $1,874 AN OUNCE
 On Sep. 2, 2011, gold reached its record high (as of that time) of $1,873.70 per ounce.
 
A weak jobs report, ongoing Eurozone debt crisis, and lingering uncertainty over the U.S. debt
ceiling caused prices to nearly double from $1,000 an ounce in 2009.
 In July, investors worried that Congress wouldn't raise the debt ceiling in time.
 Without the ability to issue new debt, the federal government might have defaulted on its debt.
 In September 2009, gold was trading near its all-time high of $1,032.
 As the dollar declined, many wondered whether it was a good time to buy gold.
 It was, if you had a crystal ball and could see into the future. At the time, the world was coming out of
the 2008 financial crisis.
 Many thought economic growth would bounce back as it did following any other recession. Instead, a
high foreclosure rate in the United States and growing sovereign debt concerns in Europe kept
investors on edge.
 Still, most financial planners will advise you have no more than 10% of your assets in gold.

10. 2020 RECESSION CAUSES NEW RECORD HIGH FOR GOLD
 On July 23, 2020, gold surpassed its prior high, closing at
$1,882.35 an ounce as investors were concerned about the 2020
recession.
 By August 7, 2020, gold reached a new all-time record of
$2,062,50 an ounce.

11. GOLD PRICE HISTORY
 Before gold was used as coinage, its value was recognized.
 Gold jewelry is buried in the Tomb of Djer, king of the First Egyptian
Dynasty.
 Gold's beauty, luster, and malleability made it perfect for many uses. In
fact, the Egyptians became masters in the art of beating gold into leaf.
 Gold was first used for money in 643 BC. In 30 BC, the Roman
Emperor Augustus set the price of gold at 45 coins to the pound.
 Its value has steadily increased since then, reaching a peak of $1,823
an ounce in 2011.
 It fell to $1,050.60 on Dec. 3, 2015. It began rising after that, reaching
a new high of $2,061.50 on August 7, 2020

12. GOLD, "THE ULTIMATE BUBBLE," HAS BURST
 Was commodities trader George Soros right when he said: "Gold is the ultimate bubble"? Soros argued
that gold, unlike housing, company stocks, or even oil, more easily lent itself to speculation because it
has very little intrinsic value.
 That could mean the high prices in 2011 and 2020 were a sign of an asset bubble.

13. THREE REASONS TO INVEST IN GOLD
 When the price of gold shoots up, everyone wonders if they should buy it.
 Are you a good candidate for buying gold? Only if you have enough money to ride out
any ups or downs that could last years.
 In fact, the higher the price, the riskier this commodity is. You never know when a gold boom
will turn into a bust.
 People invest in gold for one of three reasons.
1. Offset stock market declines
2. Hedge against inflation
3. Counteract a declining dollar

14. THREE REASONS TO INVEST IN GOLD - I
 Gold is often considered a safe-haven investment. But is it really?
 Gold is the best hedge against a potential stock market crash, according to research done by
Trinity College.
 It found that gold prices increased dramatically for 15 days after a crash.
 Frightened investors panicked, sold their stocks, and bought gold. After the 15 days, gold
prices lost value against rebounding stock prices.
 For that reason, gold should be included in a well-diversified portfolio.
 It does protect your investments as a hedge after a stock market crash.
 But this protection is short-lived.

15. HISTORY OF GOLD STANDARD
 The gold standard is when countries tie the value of their currency to gold.
 They are willing to redeem that currency for its value in gold.
 The gold standard allowed lightweight paper currency to be used for trade, instead of heavy
gold bullion.
 In addition to making purses, and pockets, lighter, the gold standard allowed global trade.
 Gold was first used as a standard in 643 B.C. when the metal was used to create coins.
 Wealth was defined strictly by the amount of gold you had. Gold as money evolved from coins
to paper redeemable by coins to a concept that was only loosely tied to its value in gold.

16. HISTORY OF GOLD STANDARD-I
 The gold standard helped create the Great Depression.
 It was modified after World War II to make the U.S. dollar the de facto world
currency. But President Nixon disbanded it in the 1970s.
 During the financial crisis in 2008, many longed for a return to the gold
standard.
 It seemed that money had lost all relation to anything concrete.
 But the very forces that pried America away from the gold standard also
meant that a return would prompt massive deflation.
 It would be enough to throw the global economy into another depression.

17. GOLD NEWS & ANALYSIS
 Gold Bulls Re-Ignite Big-Picture Bullish Trend
 It was a big week for Gold prices as the yellow metal broke out to fresh two-month-highs.
 The big question is whether the big-picture bullish trend is coming back into order after a near nine-month-pullback.
 USD weakness assisted with the move as USD bears re-emerged in a big way this week.
 XAU/USD closes below $1840 amid disappointing NFP, 200-DMA still in sight.
• Gold bulls have eyes on a 61.8% Fibo monthly target of $1,850.
• Shorter-term, the bears can target at least a drift to a 38.2% Fibo at 1.807 or the daily support, near $1,800.
• XAU/USD to see further gains towards the 200-DMA at $1853 – Credit Suisse.
• XAU/USD eyes $1840, shrugging off overbought condition.
 Source:
Gold (XAU/USD) News and Analysis (dailyfx.com)
Gold Forecast, News and Analysis - FXStreet

18. GOLD PRICE

19. GOLD CHART